Top Recurring Deposit Schemes

You must have heard about recurring deposits and how they are a great savings tool. If you are searching for top RD schemes rolled out by banks, read ahead.

What are RD Schemes?

RD is short for recurring deposit and it is a very convenient tool for saving for short and long-term goals. You can make monthly payments toward an RD account and earn interest throughout its tenure. 

Here are some features of recurring deposits - 

Top RD schemes

Major banks offer different kinds of RD schemes for their customers. These schemes allow more benefits and flexibility for saving. Let us take a look at the top RD schemes by major banks - 

State Bank of India

If you are searching for which is the best RD scheme in SBI, here are the details of the SBI Recurring Deposit Scheme -

Tenure 

12 months - 10 years

Deposit Amount

Minimum Rs.100, and then multiples of Rs.10

SBI offers another RD scheme called the e-SBI Flexi Deposit Scheme which is a flexible recurring deposit. Its details are -

Tenure 

5 - 7 years

Deposit Amount

Rs.5,000 to Rs.50,000 in a financial year

Here are the interest rates of the best RD schemes in SBI below Rs.2 Crore -

Tenure Interest Rates for the General Public Interest Rates for Senior Citizens

1 Year to >2 years

6.90%

7.30%

2 years to >3 years

7.00%

7.50%

3 years to >5 years

6.75%

7.25%

5 years and up to 10 years

6.50%

7.50%

Note: Rates mentioned as of 13th March 2024, and can be revised by the bank without any notice. Please check with the bank before opening an account.

ICICI Bank

ICICI Bank offers two RD schemes, both of which are popular among its customers. Here are the details of the ICICI Bank Recurring Deposit Scheme -

Tenure 

6 months to 10 years, in multiples of 3 months

Deposit Amount

Minimum Rs.100, and then multiples of Rs.10

Penalty for delayed installment

Rs.12 per Rs.1,000

When searching for which is the best RD scheme, you should also check out the ICICI iWish Goal Based Savings. It is a flexible RD and its details are -

Tenure 

Any

Deposit Amount

Any

The interest rates of both the RDs depend on the tenure of the RD. The rates for the general public and senior citizens are mentioned in the table below -

Tenure Interest Rates for the General Public Interest Rates for Senior Citizens

6 months

4.75%

5.25%

9 months

6.00%

6.50%

12 months

6.70%

7.20%

15 months

7.20%

7.75%

18 months

7.20%

7.75%

21 months

7.20%

7.75%

24 months

7.20%

7.75%

27 months

7.00%

7.50%

30 months

7.00%

7.50%

33 months

7.00%

7.50%

36 months

7.00%

7.50%

<3 years to >5 years

7.00%

7.50%

<5 years to >10 years

6.90%

7.50%

Note: Rates mentioned as of 13th March 2024, and can be revised by the bank without any notice. Please check with the bank before opening an account.

HDFC Bank 

HDFC offers two RD schemes for its customers. The first is the Recurring Deposit Scheme whose details are -

Tenure 

6 months to 10 years, in multiples of 3 months

Deposit Amount (Minimum)

Rs.1000 per month, and then multiples of Rs.100

Deposit Amount (Maximum)

Rs.1,99,99,900 per month

The second one is a flexible recurring deposit called the My Passion Fund, whose details are as follows -

Tenure 

6 months to 10 years

Deposit Amount 

Rs.1,000 to Rs.14,99,900 per month

Here are the interest rates of the best RD schemes in the HDFC Bank -

Tenure Interest Rates for the General Public Interest Rates for Senior Citizens

6 months

4.50%

5.00%

9 months

5.75%

6.25%

12 months

6.60%

7.10%

15 months

7.10%

7.60%

24 months

7.00%

7.50%

27 months

7.00%

7.50%

36 months

7.00%

7.50%

39 months

7.00%

7.50%

48 months

7.00%

7.50%

60 months

7.00%

7.50%

90 months

7.00%

7.75%

120 months

7.00%

7.75%

Note: Rates mentioned as of 13th March 2024, and can be revised by the bank without any notice. Please check with the bank before opening an account.

Deutsche Bank

If you check the highest RD interest rates, Deutsche Bank’s product named Recurring Fixed Deposit Scheme is a top contender. Here are the details of the scheme -

Tenure 

12 months to 60 months, in multiples of 3 months

Deposit Amount (Minimum)

Rs.5,000

Deposit Amount (Maximum)

Rs.2 Lakh

This RD scheme has different interest rates for domestic, NRO, NRE, and senior citizens based on the tenure of the deposit - 

Tenure Interest Rates for the Domestic NRO Interest Rates for the NRE Interest Rates for Senior Citizens

12 months

7.00%

7.00%

7.00%

15 -18 months

8.00%

8.00%

8.00%

21 - 24 months

8.00%

8.00%

8.00%

27 -36 months

8.00%

8.00%

8.00%

39 -48 months

7.00%

7.00%

7.00%

51 - 57 months

7.00%

7.00%

7.00%

60 months

7.50%

7.50%

7.50%

Note: Rates mentioned as of 13th March 2024, and can be revised by the bank without any notice. Please check with the bank before opening an account.

Central Bank of India

The Central Bank of India has four RD schemes to choose from. One of the top RD schemes is the Cent Surakshit Samriddhi RD, whose details are - 

Tenure 

84 months

Deposit Amount (Minimum)

Minimum Rs.10,000, and then multiples of Rs.10,000

Deposit Amount (Maximum)

Rs.1 Lakh

Special Feature

Life insurance coverage up to 100 times the principal installment amount till the maturity of the RD.

The second one is the CENT Swa-Shakti Flexi Recurring Deposit Scheme, which is a flexible recurring deposit scheme -

Tenure 

Flexible, from 6 months to 120 months

Core Deposit Amount (Minimum)

Rs.100, in multiples of Rs.100

Core Deposit Amount (Maximum)

Rs.1 Lakh

Variable Deposit Amount

Up to 10 times of core amount

The interest rates offered by the bank on these two RDs are mentioned here -

Tenure Interest Rates for the General Public Interest Rates for Senior Citizens

180 days to 270 days

6.00%

6.50%

271 days to 364 days

6.25%

6.75%

1 Year to >2 years

6.75%

7.25%

2 years to >3 years

7.00%

7.50%

3 years to >5 years

6.50%

7.00%

5 years and up to 10 years

6.25%

6.75%

Note: Rates mentioned as of 13th March 2024, and can be revised by the bank without any notice. Please check with the bank before opening an account.

The other two schemes offered by the Central Bank of India that might be the best RD schemes for you are mentioned here -

The CENT Lakhpati RD’s maturity value is Rs.1 Lakh plus. Here is the tenure, installments, and rates of interest -

Tenure Installment Amount Rate of Interest Offered

1

Rs.8,100

5.35%

2

Rs.3,940

5.40%

3

Rs.2,560

5.40%

4

Rs.1,870

5.40%

5

Rs.1,450

5.60%

6

Rs.1,170

5.60%

7

Rs.980

5.60%

8

Rs.830

5.60%

9

Rs.720

5.60%

10

Rs.630

5.60%

Note: Rates mentioned as of 13th March 2024, and can be revised by the bank without any notice. Please check with the bank before opening an account.

The last scheme, the Cent Millionaire Recurring Deposit Scheme has an installment of Rs.6,250 and is payable for 10 years. The maturity amount is Rs.10 Lakh plus.

IndusInd Bank 

IndusInd Bank offers the IndusInd Bank Recurring Deposit Scheme, whose important details are mentioned here -

Tenure 

12 months to 120 months

Deposit Amount (Minimum)

Rs.500, in multiples of Rs.100

The rate of interests offered by the bank for the general public and senior citizens are listed below -

Tenure Interest Rates for the General Public Interest Rates for Senior Citizens

12 months

7.75%

8.25%

15 months

7.75%

8.25%

18 months

7.75%

8.25%

21 months

7.75%

8.25%

24 months

7.75%

8.25%

27 months

7.25%

7.75%

30 months

7.25%

7.75%

33 months

7.25%

7.75%

36 months

7.25%

7.75%

39 months

7.25%

7.75%

3 years to >61 months

7.25%

7.75%

61 months and above

7.00%

7.50%

Note: Rates mentioned as of 13th March 2024, and can be revised by the bank without any notice. Please check with the bank before opening an account.

Types of RD Schemes

RD deposits can be of many types depending on the bank you choose. Generally, the following are the types offered by major banks -

Anyone between the ages of 18 and 60 is eligible for these schemes. Interest rates generally range from 2.65% to 8.35%.

Anyone above the age of 10 and below the age of 18 can open such an account. A guardian is necessary to open a minor RD account. Some banks offer higher interest rates for junior accounts to encourage saving habits at a young age.

If you are above the age of 60, you can open a recurring deposit account and get higher interest rates. Major banks offer 0.50% more for such accounts than regular RD accounts.

Some banks have these schemes for customers above the age of 80. You might either get the rates for senior citizens or higher, depending on the schemes of the bank you choose.

These RDs are offered to people having Non-resident External and Non-Resident Ordinary accounts. They may either get similar or lower interest rates as regular RDs depending on your bank.

Banks often have special schemes and offers that provide extra benefits when you open an RD account. You might get benefits like free life insurance, part withdrawal without penalty, etc.

How to Choose the Best RD Scheme?

Before you select the best RD scheme, please note that it is not always the one with the highest interest rate. You should check other factors like ease of access, premature withdrawals, tenure, amount allowed, etc.

Here is a list of factors that affect the interest you will earn on your RD scheme -

Whether you have a regular savings account, an NRE, or an NRO account will play a major role. Some banks, however, offer similar interest rates for all these types of accounts.

How much time you deposit money also affects your interest rates. Top RD schemes with medium tenure earn the highest interest rates in general. 

The bank you choose will have the most major role, as banks decide the interest rates. Some banks offer similar interest rates for both short and long-term deposits, as well as the general public and senior citizens.

Your bank might also have a special RD scheme that might be offering better terms.

If you are above the age of 60, chances are you will get a higher interest rate. On crossing the age of 80, the interest rate on RDs will be even higher. Sometimes, even juniors (between ages 10 and 18) can get special offers and higher interest rates.

Eligibility and Documents Required for Top RD Schemes

When you are choosing the best RD schemes for you, you must also pay attention to the eligibility criteria and the documentation required. Each bank will have different requirements, however, generally the following is true for most banks.

Eligibility Criteria for Opening a Recurring Deposit

Anyone having a bank account can start a recurring deposit. The eligibility criteria are -

Documents Required for Opening a Recurring Deposit

Minimal documents are required for starting a recurring deposit -

Conclusion

Recurring deposit schemes are a great way to build discipline and invest without having to put aside a huge investment. You can use automated payments to contribute a minor amount every month and earn interest while you save.

It is one of the safest forms of investment as your money is not dabbled in the market. The interest rates do not fluctuate and you will get the amount that is promised to you. The lump sum amount is transferred directly to the bank account of your choice when the tenure ends.

You can check the status of RDs online through the internet or mobile banking. Top RD schemes also let you nominate someone who can get the money in the unfortunate event of your death. Banks also offer pre-approved loan offers if you have an RD with them. Loan amounts can range from 80% to 90% of the funds saved in your RD. 

However, you must note that RDs are not tax-savings investments. The interest you earn on RDs is taxable, based on the tax slab you are in.

Top Recurring Deposit Schemes - Related FAQs

All banks roll out attractive RD schemes from time to time. Central Bank of India has the most number of RD schemes for you to choose from. In the end, the best scheme for you will be the one that fits your requirements.

SBI offers two RD schemes - one a regular recurring deposit scheme and another a flexi RD scheme. The first one has a tenure of 1-10 years, whereas you can have a tenure of 5-7 years in the latter. The rates of interest are similar in both RDs, but the flexible RD has a scope of depositing extra funds.

RDs are a great way to invest money in a risk-free manner. You earn higher interest rates as compared to savings bank accounts and you don’t even have to make a lump sum investment as in the case of fixed deposits.

Yes, you can break an RD before maturity. You will, however, have to pay a penalty to do so.

Both Fixed Deposits (FDs) and Recurring Deposits (RDs) have their advantages and drawbacks. FDs generally pay higher interest rates as compared to RDs, however, you have to deposit a lump sum amount in the case of an FD.

Unfortunately, RDs are not tax-saving investments. The interest earned on an RD is taxable on maturity as per your tax slab.

INTERLINKS

Was this information useful?

300 characters allowed (alphanumeric and special characters such as comma, full stop, @, ", &)

Thank you. Your feedback is important to us.